- 06 Dec
Hospitality And Construction Sectors Top The Insolvency Index
Looking at some figures in Business Money, published from the Creditsafe Insolvency Index, it appears that the hospitality sector (hospitality, hotels, restaurants and bars) tops the insolvency index, followed by the construction sector and then manufacturing. Worrying if you supply those trades with goods or services.
Business "Deaths" Are Rising
Figures from the Office For National Statistics suggest that generally, the level of failures is on the rise. The statistics show that the number of UK business "deaths" increased from 288,000 to 357,000 between 2016 and 2017, a death rate of 12.2% (an increase from the rate of 10.2% in 2016). With uncertainties over Brexit looming, now may be a good time to consider the options in order to protect your business from customer failures.
Risk Of Debtor Insolvencies
You may be supplying food, beverages, equipment or staff to the hospitality sector, or raw materials, equipment or staff to the construction sector. Perhaps it is time to think about putting bad debt protection in place - just in case you fall foul of the next large company failure?
A debtor insolvency could see your organisation losing the value of outstanding accounts receivable, not to mention the additional impact of the loss of trade to a major customer. It can be a household name that fails, as we have seen before in the case of Carillion, the construction giant that collapsed owing an estimated £2 billion to its supply chain of 30,000 suppliers and subcontractors (according to the Chartered Institute of Procurement & Supplies).
Protecting Your Business Against Customer Failures
Bad debt protection could protect your business from this type of risk, for the cost of a small premium, it could give you great peace of mind. You can get up to 100% bad debt protection (a first loss may be payable in some cases).
If you would like to review your non recourse, bad debt protection options please call Sean on 03330 113622, and avoid your company suffering the effects of the next high profile company failure.
- 30 Jul
The Risk Of Customer Bad Debts Is Rising
The risk of customer bad debts is rising as there has been an increase in both corporate and personal insolvencies. It is time to protect your business against the risk from customers taking trade credit. Protection against taking customer bad debts is still on offer at present.REQUEST DETAILS OF BAD DEBT PROTECTIONAn article in The Times dated 28th July 2018 reported that personal insolvencies...
- 24 Apr
Factoring For Road Transport Company Cash Flow Problems As Bad Debts Increase
Coincidently, just after posting my article about transportation factoring companies, I saw an article published online by the Motor Transport publication, suggesting that bad debts have risen significantly within the road transport sector.The article sites figures regarding the road transport sector, released by Credit Safe. This statistics show that in the first quarter of 2018, while sales...
- 23 Apr
Retailageddon - Why Are So Many High Profile Companies In Financial Trouble?
Can anyone explain why so many high profile companies are having financial problems? Is there cause to worry about economic stability?I first started really paying attention to the spate of emerging problems when Carillion collapsed, the second largest UK construction firm. Watching some of the social media commentators that have an interest in the credit insurance sector. Since then there seem...
- 26 Mar
Protection For Suppliers To UK Retail Chains
If you are a supplier to any of the large retail chains, you may wish to review your requirement for bad protection following a number of recent news reports from the retail sector.More problems have emerged from the sector as the BBC report that Prezzo, the Italian restaurant chain plan to close approximately a third of their retail outlets, as part of a creditors voluntary arrangement...
- 28 Feb
Maplin Electronics & Toys R Us Enter Administration
Two more large company failures on the BBC news this morning - both Maplin Electronics and Toys R Us have entered Administration.Administration is an insolvency process whereby a firm of insolvency practitioners, the Administrators, take over the running of an insolvent business (one that cannot pay its creditors as they fall due), in order to maximise the returns for creditors of the business....
- 30 Jan
Pulse On Protecting Against Carillion Bad Debts
I had an email from Pulse Cashflow Finance, one of our funding panel, that I thought raised a great point about the recent failure of Carillion. Their clients will not be suffering any bad debts.They have included "bad debt protection" for all of their clients, including those operating within the construction sector, meaning that their clients are protected from taking a bad debt.OK, so it was...